Apple iCloud Shifts Spending To Google From Amazon’s AWS: Report
Apple ( AAPL ) is shifting some of its iCloud infrastructure to Alphabet ( GOOGL ) unit Google from Amazon ( AMZN ) Web Services, according to a report Wednesday. The deal was made last year, with Apple agreeing to spend $400 million to $600 million at Google Cloud, according to CRN, citing sources. CRN set it wasn’t clear if that was an annualized rate or total spending amount. This would be a big coup for Alphabet’s Google, which has been trying to make a bigger mark in enterprise cloud services, taking on Amazon’s AWS and Microsoft ( MSFT ) unit Azure. Google in November hired VMware ( VMW ) co-founder and ex-CEO Diane Green to run its cloud operations. Streaming music giant Spotify last month said it was shifting its infrastructure over to Google Cloud. Google and Verizon Communications ( VZ ) reportedly have been in talks on a hybrid cloud partnership. Apple has never officially confirmed that it uses AWS and Microsoft’s Azure. However, Morgan Stanley recently estimated that Apple spends $1 billion a year with Amazon’s AWS. Apple also is spending billions of dollars on data centers, suggesting it may seek to reduce its reliance on cloud services firms such as AWS.